PESHAWAR: An accountability court here remanded a contractor into the custody of National Accountability Bureau (NAB), Khyber Pakhtunkhwa, for seven days in a high-profile case involving the alleged embezzlement of over Rs37 billion in the Upper Kohistan district accounts office.

Suspect Khushal Khan, a resident of Kohistan, is the owner of a construction firm, Khushal and Co, and was arrested by the NAB on the charge of conniving with other accused in the multi-billion rupees graft case.

Judge Mohammad Hamid Mughal pronounced that in light of contents of the application of the NAB coupled with circumstances of the case, seven days custody of the accused was allowed to NAB and he should be produced again on May 7.

An application, seeking 14-day physical custody of the suspect, was submitted by the investigation officer, SP Inayatullah, and a special prosecutor of the bureau, Habibullah Baig.

Accountability court orders his production on May 7

They said that the NAB had received a source report on April 8, 2025, alleging massive financial scam in Upper Kohistan, involving the illegal withdrawal and misappropriation of over Rs37 billion from the Contractor’s Security Deposit head of Account G-10113.

The officials said that the allegations implicated

a network of government officials, bank personnel and private contractors in a meticulously orchestrated conspiracy that exploited the systemic vulnerabilities and violated the Accounting Policies and Procedures Manual.

They said that the present suspect was the owner of a company and had opened and operated its bank accounts in two banks at Dasu, Upper Kohistan with malafide intentions and ulterior motives.

The suspects alleged that the investigation had so far revealed that he in connivance with the co-accused received illegally issued treasury cheques fraudulently drawn on public exchequer worth more than Rs196.98 million without any corresponding civil work and deposited the same in his bank accounts for encashment of crime proceeds.

They claimed that the suspect had withdrawn the resultant crime proceeds and illegally utilised the same.

The officials alleged that during investigation, the suspect had been repeatedly summoned but he deliberately and willfully failed to appear to record his version and absconded at unknown places to destroy the valuable prosecution evidence relating to the possession and utilisation of proceeds of crime.

Until now, the NAB KP has arrested over 40 accused in the case including the prime accused Qaiser Iqbal, who was a head clerk of the communication and works department and his wife.

The accused include officials of District Accounts Office, C&W Department, commercial banks and scores of private contractors and individuals.

The accountability courts have so far confirmed several NAB orders to freeze dozens of moveable and immovable properties, including luxurious residences, commercial plazas and plots, expensive vehicles and cash, including foreign currency allegedly owned by several of the accused arrested so far.

Similarly, the court had also confirmed plea bargains of some of the accused, which were earlier approved by the NAB chairman.

Published in Dawn, May 2nd, 2026